The groundwork has been laid — literally — for new commercial growth in Colchester.

Late last year, the state paid for and installed a new sewer and water extension from South Main Street down Route 85 to the Lake Hayward Road intersection.

It’s crucial for two big reasons.

The state is in the process of building a new Department of Transportation maintenance facility at that intersection. DOT said the project will bring 50 jobs to the area, a prospect that town leaders say should boost local business.

The water line project also was key for construction of a long-planned Tractor Supply Co. store in a lot across the street, basically, from the new DOT facility.

“Within the new development district, the water and sewer line should be completed, we should have Tractor Supply and the new state building within six months to a year,” Town Planner Adam Turner said. “We’re hoping that will encourage other investments to come forward.”

Jimmy Pan, owner of the Gung Ho Chinese restaurant in town, recently opened Toyo Hibachi Asian Fusion, a new restaurant on South Main Street.

“We’re really looking forward to the new building,” Pan said of the state facility project. “It will bring more business to town.”

Elsewhere in town, the business environment presents more of a challenge, with some smaller commercial interests closing or moving in recent years.

First Selectman Gregg Schuster pointed to Lebanon Avenue as an area where new growth is targeted. He said recent streetscape improvements are designed to attract more foot traffic.

“We really want to highlight the Air Line Trail and the other improvements that have taken place,” he said. “We want to make it as advantageous as possible for businesses to come here.”

The Keystone Shoppes plaza, a commercial project operated by Galaxy Development on Linwood Avenue, has taken several years to grow. An auto parts store and Asian restaurant are thriving. But some storefronts are vacant.

Also, an approved project for more commercial building in the Stop & Shop plaza next door has not moved forward.

Turner said in the downtown village area, bringing business to the South Main Street site of the former Colchester Chevrolet dealership remains a priority.

“We’re also looking to do more infrastructure improvements, sidewalks and things,” he said. “And we’re hopeful we can fill up the Galaxy shops and get the Stop and Shop development moving. But our vacancy rate remains low. We have few spaces that are unoccupied.”